Debt relief? Consolidation? Or just Screwed ? ?
Sunday, September 6th, 2009 at
12:04 pm
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Tagged with: Amp • car loan • credit cards • Credit Debt • credit score • Credit Solution • Creditors • Debt Consolidation • Debt Freedom • Debt Relief Consolidation • Debt Solution • Fraction • Little Break • Loc • New Job • Nova • student loans • Tho
Filed under: Free Money Saving Tips Debt Relief
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You have 3 uncommon choices here:
1. Negotiated Debt Settlement
2. Consumer Credit Counseling
3. Debt Consolidation Loan
Except the loan, both, credit counseling and debt settlement, are going to negatively impact your credit. In credit counseling, you are paying a third have fun to make payments on your behalf, and in return the credit counseling firm is supposed to get you discounts on late fees and interest rates to "ideally" get the debt paid of quicker. These programs usually do not work, primarily because, no one agency has fantastic relations ships with all creditors and more so because more than half of them were funded by credit card companies themselves. These programs can take anything from 4 – 6 years to complete.
Also, many of your future lenders and creditors are going to see that you enrolled in a credit counseling program, and are basically going to reckon that you cannot handle you finances well.
Negotiated debt settlement, basically saves your money in an escrow account and then makes lump sum settlement payments to each of your creditors ONE AT A TIME. I cannot stress that enough. Most people do not know this concept, as while you are saving money, no payments are bieng made to the creditors. This will certainly impact your credit. But you have to look at it in a sense that you take this time to get rid of your debt absolutely, and you can repair/recover your credit after you have gotten the debts paid of. Debt settlement programs take about 18 tp 36 months to complete, so you are looking at a certain timeline to eliminate your debts.
Keep in mind that both these options will only work with credit card debts and not your student or auto loans.
The third option is to get another debt consolidation loan, but given your limited income and high amount of debt, I doubt that you will be successful in getting approved for a low interest loan for 25K (which is what you need to get all your credit card debt into one loan.
You can also try to consolidate your student loans seperately.